Economic woes see shopping centre delayed indefinitely

A SHOPPING centre approved for Blacks Beach Cove has been delayed indefinitely because "the Mackay region's housing market has effectively ground to a halt".

That's according to a written request to extend a development approval, put forward by Innovative Planning Solutions on behalf of clients Blacks Beach Cove and approved by Mackay Regional Council.

The new approval period stretches four more years to July, 2020.

In its request to the council, Blacks Beach Cove pulled no punches when it came to practical reasons why the shopping centre's development needed to be pushed back.

"The Mackay Regional Council area has, in the past, been reliant upon the mining industry to provide for growth and demand within the local economy," it reads.

"With a narrow economic base, Mackay has been significantly adversely impacted by reduced activity in the coal sector since late 2012.

"On the back of this downturn in the local economy, the Mackay region's housing market has effectively ground to a halt."

The request said Blacks Beach Cove "has every intention" of building the shopping centre when growth returned to the area and "where sufficient demand exists".

"The economic climate has heavily influenced our client's ability to act on the Shopping Centre approval, as without a 'critical mass' of population being established in the local catchment, the Shopping Centre is not yet currently viable to develop, it reads.

But Blacks Beach Cove development manager Toby Zaremba said there's "two major factors" also leading to the shopping centre's delay.

"(Department of) Education Queensland purchased some land off Blacks Beach Rd about eight years ago, earmarked for a primary school in 2014," he said.

"I haven't even heard from the Department of Education. But that was a big factor.

"Another factor is Ergon Energy hasn't got enough capacity to serve the retail sector in the area. (There's) No power supply available.

"Ergon's main infrastructure can't serve anymore development. There is enough capacity there at the moment...but it (Blacks Beach Cove) was always destined to have a certain number of dwellings."

Mr Zaremba said despite economic conditions in the Mackay region the team at Blacks Beach Cove were optimistic about the future.

"We're confident in Mackay. We've been here since the early 2000s...we've seen ups and downs since then," he said.

"Ideally, we would want more dwellings (built). I think there are approximately 600 dwellings, with approximately another 400 to 500 to go."

Mr Zaremba was adamant a shopping centre at Blacks Beach Cove "needs to go ahead" and it will still be built in coming years.

Mackay Regional Council, Department of Education Queensland and Ergon Energy have been contacted for comment.